...
...
Next Story

On 8th pay panel, govt shares key details in Parliament: When will it take effect, and more

The Minister of State for Finance, Pankaj Chaudhary, delivered a written reply to a question in the Lok Sabha during the ongoing winter session of Parliament

Updated on: Dec 09, 2025 05:07 PM IST
Advertisement

The government has provided details regarding the Eighth Central Pay Commissions (8th CPC) in Parliament in response to questions by some MPs, including the scope and timelines for its implementation. Pay commissions revise salaries and pensions for central government employees.

The Eight Central Pay Commission is mandated to submit its recommendations within 18 months of its constitution date. (Reuters/representative image)
The Eight Central Pay Commission is mandated to submit its recommendations within 18 months of its constitution date. (Reuters/representative image)

The Minister of State for Finance, Pankaj Chaudhary, delivered a written reply to a question in the Lok Sabha during the ongoing winter session that is to conclude on December 19.

When did 8th CPC work start?

Chaudhary confirmed that the commission has been formally constituted, and its Terms of Reference (ToR) were notified on November 3, 2025, via a resolution from the Ministry of Finance. As to how many people will be covered, the 8th CPC is set to cover a vast population of public servants and retirees. According to the reply placed before Parliament, over 50.14 lakh central government employees and approximately 69 lakh pensioners will be under the commission's purview.

When will 8th CPC salaries take effect?

The effect of the 8th CPC recommendations is generally expected to be from January 1, 2026, following the trend established by previous pay commissions. This means whatever revision takes place, even if after January 2026, the revised pay will be calculated with effect from January 2026, thus relevant arreas would be paid when it is implemented.

Historically, the government has taken several months, or even years, between the due date and the actual rollout. For instance, the 7th CPC recommendations were implemented within six months of the due date, while others took longer.

Who will be covered by 8th CPC?

The minister's reply in Parliament elaborated on the mandate outlined in the notified ToR for the 8th CPC. These include central government employees (both industrial and non-industrial), personnel belonging to the all-India services and defence forces, employees of Union Territories, and other such.

Likely salary increases

Based on current proposals and trends, the 8th CPC is expected to bring substantial changes to the emolument structure — likely 20–25 per cent. Earlier proposals suggest a major hike in minimum basic pay, potentially reaching 34,500– 41,000 per month. When the new pay commission is implemented, the existing Dearness Allowance (DA) is typically reset to zero. The government has, however, clarified that there is currently no proposal under consideration to permanently merge the existing DA with the basic pay. A higher basic pay usually means higher related benefits.

 
ABOUT THE AUTHOR
HT News Desk

Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.

Check India news real-time updates, latest news on Hindustan Times and more across India.
Check India news real-time updates, latest news on Hindustan Times and more across India.
SHARE THIS ARTICLE ON
Hindustantimes wants to start sending you push notifications. Click allow to subscribe